The short-run price elasticity of demand for airline travel is 0.05,while the long-run elasticity is 2.36.This means that a significant increase in airline ticket prices will cause airline companies to:
A)collect less revenue from short-notice travellers.
B)collect more revenue from travellers who book well in advance.
C)lose money on short-notice travellers.
D)collect less revenue from travellers who book well in advance.
E)lose many of its short-notice travellers.

Question

Quizplus · Accepted Answer

The Answer of The short-run price elasticity of demand for airline travel is 0.05,while the long-run elasticity is 2.36.This means that a significant increase in airline ticket prices will cause airline companies to:
A)collect less revenue from short-notice travellers.
B)collect more revenue from travellers who book well in advance.
C)lose money on short-notice travellers.
D)collect less revenue from travellers who book well in advance.
E)lose many of its short-notice travellers.

The Short-Run Price Elasticity of Demand for Airline Travel Is